Contact Energy Limited · NZX:CEN
Contact Energy — Debt Investor Presentation (March 2023)
20 slides from Contact Energy's debt investor presentation, Mar 27, 2023
Slide 1: Investor update for proposed bond offer
Contact Energy Limited Investor update for proposed bond offer Investor presentation 27 March 2023 1
Slide 2: Disclaimer and important information
Disclaimer and important information While all reasonable care has been taken in compiling this presentation, neither Contact EBITDAF, free cash flow and operating free cash flow are financial measures that are nor any of its directors, employees, shareholders nor any other person gives any “non-GAA
Slide 3: Presenters
Contact Presenters Matthew Forbes Head of Corporate Finance Will Thomson Corporate Treasurer 3
Slide 4: Agenda
Agenda Electricity Market Overview 5-8 Contact Energy Strategy 9-15 Financial Performance Update 16 Capital Structure & Funding 17-20 4
Slide 5: Introduction to Contact
Introduction to Contact Presented by Matthew Forbes Head of Corporate Finance Electricity Market Overview Contact Energy Strategy Financial Performance Update 5
Slide 6: Electrification will reduce carbon emissions
Electrification will reduce carbon emissions With New Zealand's high renewable penetration, electricity is the solution to reducing carbon emissions, not the problem Greenhouse gas emissions by sector Paris agreement target, Mt CO2e Our future energy profile (Greenhouse Gas Inventory, 2020) (Transpo
Slide 7: Climate change and regulation
Climate change and regulation The New Zealand regulatory framework is being adapted to deliver on this societal imperative. There is political consensus to deliver net zero by 2050 and on the emissions reductions budgets needed to get there Potential electricity demand impact Potential renewable gen
Slide 8: Topical regulatory matters
Topical regulatory matters Key themes What Contact is doing Medium term spot and hedge market prices continue to Contact is exploring further renewable generation opportunities across geothermal, wind and be higher than long term averages due to coal prices, solar to reduce future impacts from therm
Slide 9: Our strategy to lead New Zealand's decarbonisation
Our strategy to lead New Zealand’s decarbonisation Strategic Grow Grow renewable Decarbonise Create outstanding theme demand development our portfolio customer experiences Objective Attract new industrial demand with Build renewable generation and Lead an orderly transition Create New Zealand's lead
Slide 10: Contact believes it is well positioned to enable New Zealand's decarbonisation
Contact believes it is well positioned to enable New Zealand’s decarbonisation 2/ New Zealand’s best renewable development pipeline 1/ Distinctive capabilities 3/ Leading New Zealand's thermal Deep understanding of energy applications generation transition Geothermal +2.9TWh Wind Solar target Unique
Slide 11: Contact has a diversified portfolio of generation assets
Contact has a diversified portfolio of generation assets 2018 - 2022 generation by station and type (five-year average)1 Where we are Under construction 1,870* 8.5TWh Average 3,820GWh generated Roxburgh (320 MW) 1,712 3,262GWh Te Huka (28 MW) 185 Ohaaki (44 MW) 310 Poihipi (55 MW) 361 1,446GWh Wairā
Slide 12: Improving demand outlook for electricity
Improving demand outlook for electricity Decarbonisation ambitions and thermal economics will support growth Focus area Large scale Industrial Major Road Green data centres process heat industrial transport chemicals energy users What we’ve • Attractive baseload • Some barriers remain e.g. • Increas
Slide 13: Decarbonising our portfolio: Leading an orderly transition to renewables
Decarbonising our portfolio: Leading an orderly transition to renewables 2021 Thermal review announced Key outcomes: • Act on our commitment to ESG, contributing to better outcomes for our communities and the ThermalCo discussion paper released environment 2022 • Support secure 24/7 electricity supp
Slide 14: Market leading renewable development pipeline consented
Market leading renewable development pipeline Contact has built a renewable electricity development pipeline of 6TWh, with capability to deliver 6TWH Planned and consented renewable energy development projects1 Expected generation (indicative): 3.0 Planned and 2.1 Tauhara Te Huka Wairākei Tauhara Ge
Slide 15: Wairākei geothermal consents granted
Wairākei geothermal consents granted Consent received to operate for the next 35 years on the Wairākei field, enabling Contact to proceed with its plans for the replacement of Wairākei A and B legacy geothermal power stations at Te Mihi (GeoFuture) Wairākei re-consent highlights GeoFuture planned de
Slide 16: Financial performance update
Financial performance update High quality, long-life generation assets support strong operating cash flow Operating earnings (EBITDAF) ($m) Operating free cash flow ($m) Average operating cash flow for the preceding four financial years 332 324 325 326 550 322 520 480 480 480 480 309 100% 80% Divide
Slide 17: Capital Structure & Funding
Capital Structure & Funding Presented by Will Thomson Corporate Treasurer Capital Structure & Funding 17
Slide 18: Funding
Funding A green and sustainably-linked debt portfolio aligned to our Contact26 strategy Closing net debt ($m) Borrowing maturities ($m)3 • Balanced debt portfolio with diverse sources of Face value of borrowings less cash Average tenor of 6.4 years as at 31 December 2022 funding; comprising bank deb
Slide 19: Sustainable Finance
Sustainable Finance • Contact established our Green Borrowing Programme in 2017 – the first such certification completed by a New Zealand issuer and the first green certification of an entire debt programme globally. This demonstrates Contact’s commitment to investing in renewable energy assets (i.e
Slide 20: Thank you
Thank you
Contact Energy — Debt Investor Presentation (March 2023) on 6ix